Buyer's Failure to Secure Financing Justifies Penalty Clause in Real Estate Agreement

A purchaser of a real estate property, having signed a preliminary sales agreement that stipulated a condition subsequent regarding the obtention of financing within a specified period, sought to unilaterally withdraw from the agreement after the deadline without proving that they had made the necessary diligent efforts to secure the loan, leading the seller to sue for damages following the buyer's failure to complete the purchase. The court upheld the lower court's decision, reasoning that the failure to meet the financing condition constituted a breach attributable to the buyer, as the buyer did not demonstrate they had actively attempted to secure the financing in good faith, thus justifying the application of the penalty clause stipulated in the preliminary agreement.